Pearson vue insurance test .|
COMPLETE QUESTIONS AND
ANSWERS 2025 LATEST UPDATED.
.
Under a Graded Premium policy, the premiums
Are lower during the policies early years
Which of the circumstances is a business disability buy-sell policy designed to help in the sale of
business.
Business owner becoming disabled
A life insurance policy owner may sell their policy to a __________ in order to receive a percentage
of the policy's face value.
Viatical settlement provider
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life.
What type of annuity did N purchase?
Fixed deferred
What is the primary factor that determines the benefits paid under a disability income policy.
Wages
This type of deductible provision states that should more than one family member be involved in a
common accident, or suffer the same illness, only one individual deductible amount shall be applied
Common accident deductible
What is the consideration given by a insurer in the consideration clause of a life policy?
Promise to pay a death benefit to a named beneficiary
Why is an applicants required on a life insurance application?
To attest that the statements on the application are accurate to the best of the applicant's
knowledge
Which of these statements about guaranteed insurability option rider is not trye?
Evidence of insurability is required when the option is exercised
Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing
additional amounts of coverage at predetermined times without requiring to provide evidence of
insurability. What kind of rider is this?
Guaranteed insurability rider
, J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While
trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his
policy?
$25,000
Medicaid was designed to assist individuals who are
Below a specific income limit
K made a fraudulent statement on her health insurance policy application. In the event of a claim on
this policy, the insurance company is required to pay
Nothing
An application for Medicare Supplement coverage may NOT be denied by the insurer if the
application was submitted within ________ month(s) after the applicant reaches the age of 65.
6
A "reimbursement policy" pays what amount of covered Long-term care expenses?
Actual covered expenses up to the daily maximum
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what
is the maximum deductible IRA contribution allowable?
$6,000
Which of the following provisions specifies how long a policyowner's health coverage will remain in
effect if the policyowner does not pay the premium when it is due?
Grace period
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary?
Life income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in
year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of
policy is this?
Modified whole life
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would
cover her loss of income?
Disability income
Which type of policy benefits to a policyholder covered under a hospital expense policy?
Reimbursement
The amount of monthly disability benefits payable under Social Security is affected by which of the
following factors?
Amount of the benefits available from other sources
COMPLETE QUESTIONS AND
ANSWERS 2025 LATEST UPDATED.
.
Under a Graded Premium policy, the premiums
Are lower during the policies early years
Which of the circumstances is a business disability buy-sell policy designed to help in the sale of
business.
Business owner becoming disabled
A life insurance policy owner may sell their policy to a __________ in order to receive a percentage
of the policy's face value.
Viatical settlement provider
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life.
What type of annuity did N purchase?
Fixed deferred
What is the primary factor that determines the benefits paid under a disability income policy.
Wages
This type of deductible provision states that should more than one family member be involved in a
common accident, or suffer the same illness, only one individual deductible amount shall be applied
Common accident deductible
What is the consideration given by a insurer in the consideration clause of a life policy?
Promise to pay a death benefit to a named beneficiary
Why is an applicants required on a life insurance application?
To attest that the statements on the application are accurate to the best of the applicant's
knowledge
Which of these statements about guaranteed insurability option rider is not trye?
Evidence of insurability is required when the option is exercised
Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing
additional amounts of coverage at predetermined times without requiring to provide evidence of
insurability. What kind of rider is this?
Guaranteed insurability rider
, J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While
trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his
policy?
$25,000
Medicaid was designed to assist individuals who are
Below a specific income limit
K made a fraudulent statement on her health insurance policy application. In the event of a claim on
this policy, the insurance company is required to pay
Nothing
An application for Medicare Supplement coverage may NOT be denied by the insurer if the
application was submitted within ________ month(s) after the applicant reaches the age of 65.
6
A "reimbursement policy" pays what amount of covered Long-term care expenses?
Actual covered expenses up to the daily maximum
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what
is the maximum deductible IRA contribution allowable?
$6,000
Which of the following provisions specifies how long a policyowner's health coverage will remain in
effect if the policyowner does not pay the premium when it is due?
Grace period
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary?
Life income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in
year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of
policy is this?
Modified whole life
K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would
cover her loss of income?
Disability income
Which type of policy benefits to a policyholder covered under a hospital expense policy?
Reimbursement
The amount of monthly disability benefits payable under Social Security is affected by which of the
following factors?
Amount of the benefits available from other sources
